Medical Device Tax Could Send 43k U.S. Jobs Overseas

If the legislation enforcing a 2.3 percent medical device tax, which is scheduled to take effect on Jan. 1, 2013, isn't repealed, it could have a serious impact on U.S. jobs associated with orthopedic device companies, according to a Journal Gazette news report.

Kosciusko County in Indiana could be particularly hit, as a 2009 survey found that 43 percent of the total county was employed by the orthopedic device industry. Some opponents of the tax estimate 43,000 U.S. jobs would be at risk if the bill is passed, and more than $3.5 billion in wages for those jobs would be sent overseas. The tax for medical device companies does not apply to overseas branches.

According to the report, federal officials have estimated the tax would generate $20 billion in revenue during the first seven years.